In this study, the global team of IDC analysts presents the top 10 predictions around intelligent ERP (i-ERP) and associated intelligent enterprise applications. i-ERP and intelligent enterprise applications use machine learning (ML), artificial intelligence (AI), and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage enterprise assets and business processes. Intelligent ERP and intelligent enterprise applications feature an assistive and conversational user experience and free users’ time for higher-value tasks by automating high-volume repeatable tasks and augmenting (via human-machine interaction) the performance of less frequent, more novel tasks. They are capable of processing, analyzing, and acting on massive volumes of data in real time using in-memory computing (IMC) technologies. As systems that learn, i-ERP and intelligent enterprise applications must allow for ongoing reconfiguration to enable process refinements and user experience (UX) adaption.

Each of the predictions discussed in this IDC FutureScape is assessed on its complexity, organizational impact, and time frame to expected mainstream adoption. Just as importantly, this study offers IDC analysts’ collective advice to IT and business decision makers to consider in their planning for a range of decision-support and decision-automation initiatives enabled by intelligent systems. The study also describes key drivers affecting IT and business decision makers as they develop or revise their strategies and create plans for resource allocation for 2019 and beyond. The following 10 predictions represent the expected trends with the greatest potential impact on intelligent ERP and intelligent enterprise application initiatives:

Prediction 1: Driven by the need to innovate and turn data into value, 50% of ERP applications will combine templatized industry/line-of-business best practices and artificial intelligence by 2021.

Prediction 2: By 2022, 60% of IT application decisions will be based on the technology provider’s ecosystem including innovators in machine learning, natural language processing, and cloud.

Prediction 3: Until 2023, many trailing-edge service providers will continue to recommend on-premises technologies, causing organizations to invest 25% of their digital transformation spend in outdated legacy products.

Prediction 4: Driven by i-ERP, 65% of the G2000 organizations will have refreshed their systems by 2023 through a process of rationalization, modernization, and transformation.

Prediction 5: By 2021, 40% of multinationals deploying a two-tier ERP model for regional support will be actively seeking to transform to a global single-tier cloud solution.

Prediction 6: By 2022, 50% of organizations will invest in new intelligent applications with capabilities to facilitate enterprisewide end-to-end workflows, removing white space between existing applications.

Prediction 7: By the end of 2019, over 40% of new ERP installations will be built from an ecosystem of apps from internal resources, service providers, technology vendors, and other partners.

Prediction 8: By 2021, 30% of functional applications will have morphed into other functional areas, necessitating the use of intelligent applications to redefine traditional workflows and job roles.

Prediction 9: By the end of 2020, AI will be the new UI as 50% of organizations will purchase application technologies focused on the user experience utilizing artificial intelligence.

Prediction 10: By 2022, 40% of intelligent applications will be part of an intelligent suite of applications.

Intelligent ERP and intelligent enterprise applications are changing businesses’ reliance on technology, moving from a transactional data repository to a substantial, proactive, outcome-based resource to the organization. Businesses can now view and interact with their organization in real time; ask questions such as what, where, when, how, and why; and predict alternative outcomes to mitigate risk. Intelligent enterprise systems enable greater productivity and profitability and the opportunity for more revenue as businesses become more agile and flexible and an intelligent enterprise.

For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Intelligent ERP 2019 Predictions web conference on-demand.